REAL WORLD EVENT DISCUSSIONS

The death of the dollar?

POSTED BY: SIGNYM
UPDATED: Saturday, October 26, 2024 13:17
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Monday, March 13, 2023 3:02 PM

SIGNYM

I believe in solving problems, not sharing them.


Still not directly a dollar problem, altho it IS fallout from increased interest rates, which itself is a reaction to declining dollar value (I e. Inflation).

More like a little Lehman moment.

OOC about bank stability, I looked at common indicators of bank stability: LIBOR, USA overnight interbank lending rates, bank stock values, and gold. Interbank lending rates have been going up, but stepwise along with Fed interest rates. Bank stocks dipped and gold rose to a "six week" high... More like a ripple than a wave.

AFA dollar value is concerned, I guess Id look at the prices of commodities that we buy with the dollar- oil comes to mind. Also, Treasury interest rates (are they being forced up to attract investors?) and long-term v short-term bonds (usually long- term bonds carry higher interest rates, but if opposite that's called inversion). Gold is a poor indicator bc it's trade volume is so small it can, and is, manipulated by big central banjs and cmmodities narkets.


-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake


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Monday, March 13, 2023 6:53 PM

6IXSTRINGJACK


Gold was the old NFTs.

Still is. Always will be.


Seriously. When and if the Republic ever fails and fiat currency is worthless, somebody is going to take your gold you paid so much for for free.

I don't even bother "Doomsday Prepping" beyond the bulk purchases I've already made. Unless you're living in a locked tight bunker, I'll be taking whatever I need to live from other people if it comes to that, unless they're armed too.



--------------------------------------------------

Growing up in a Republic was nice... Shame we couldn't keep it.

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Tuesday, March 14, 2023 12:37 AM

SECOND

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two


Quote:

Originally posted by 6IXSTRINGJACK:
Gold was the old NFTs.

Still is. Always will be.


Seriously. When and if the Republic ever fails and fiat currency is worthless, somebody is going to take your gold you paid so much for for free.

I don't even bother "Doomsday Prepping" beyond the bulk purchases I've already made. Unless you're living in a locked tight bunker, I'll be taking whatever I need to live from other people if it comes to that, unless they're armed too.


You are unfamiliar with the book of Revelations, 6ix. You shall be dead meat chopped up by an angel with a sharp, double-edged sword. Your fate was sealed with your first dozen repetitions of "Fuck Ukraine." Your weapons are useless against angels, 6ix.

https://www.biblegateway.com/passage/?search=Revelation%202&versio
n=NIV


The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly

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Tuesday, March 14, 2023 12:39 AM

SECOND

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two


Buy! Overweight! Outperform! The analysts who followed SVB and were intimately familiar with its balance sheet remained enthusiastic until literally the very last minute but by the close of business the next day there was nothing left but ashes.

I'd also show you what the regulators said, but there's nothing to show. Like the rating agencies and the analysts, they saw no problems.

Even on Wednesday, March 8, after SVB had issued its mid-quarter review, nothing happened. Moody's downgraded them slightly to Baa1, which is still solidly investment grade, and that was about it. None of the pros who understood SVB best had anything bad to say about them.

https://jabberwocking.com/heres-what-everyone-thought-about-silicon-va
lley-bank-on-tuesday-march-7
/

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly

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Tuesday, March 14, 2023 1:24 AM

SIGNYM

I believe in solving problems, not sharing them.


Quote:

Originally posted by second:
Quote:

Originally posted by 6IXSTRINGJACK:
Gold was the old NFTs.

Still is. Always will be.


Seriously. When and if the Republic ever fails and fiat currency is worthless, somebody is going to take your gold you paid so much for for free.

I don't even bother "Doomsday Prepping" beyond the bulk purchases I've already made. Unless you're living in a locked tight bunker, I'll be taking whatever I need to live from other people if it comes to that, unless they're armed too.


You are unfamiliar with the book of Revelations, 6ix. You shall be dead meat chopped up by an angel with a sharp, double-edged sword. Your fate was sealed with your first dozen repetitions of "Fuck Ukraine." Your weapons are useless against angels, 6ix.

https://www.biblegateway.com/passage/?search=Revelation%202&versio
n=NIV


The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly

Hate to tell you this SECOND, but God and his angels don't like evil little pricks. I'll bet they aren't too fond of nonbelievers using them to threaten others, either. I mean, that's really double plus ungood.

-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake


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Tuesday, March 14, 2023 5:56 AM

6IXSTRINGJACK


Quote:

Originally posted by second:
Quote:

Originally posted by 6IXSTRINGJACK:
Gold was the old NFTs.

Still is. Always will be.


Seriously. When and if the Republic ever fails and fiat currency is worthless, somebody is going to take your gold you paid so much for for free.

I don't even bother "Doomsday Prepping" beyond the bulk purchases I've already made. Unless you're living in a locked tight bunker, I'll be taking whatever I need to live from other people if it comes to that, unless they're armed too.


You are unfamiliar with the book of Revelations, 6ix. You shall be dead meat chopped up by an angel with a sharp, double-edged sword. Your fate was sealed with your first dozen repetitions of "Fuck Ukraine." Your weapons are useless against angels, 6ix.

https://www.biblegateway.com/passage/?search=Revelation%202&versio
n=NIV


The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly



Yanno... for a non-religious guy, you sure seem to be a pretty religious guy.

The angels better come packing heat.

--------------------------------------------------

Growing up in a Republic was nice... Shame we couldn't keep it.

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Tuesday, March 14, 2023 6:20 AM

SECOND

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at https://www.mediafire.com/two


Quote:

Originally posted by SIGNYM:

Hate to tell you this SECOND, but God and his angels don't like evil little pricks. I'll bet they aren't too fond of nonbelievers using them to threaten others, either. I mean, that's really double plus ungood.

Signym, presumably you misunderstand all the soul-searching that occurs during wars when God does NOT consistently act on anybody's side. Soldiers become amateur philosophers thinking about the Problem of Evil: "Is God willing to prevent evil, but not able? Then he is not omnipotent. Is he able, but not willing? Then he is malevolent. Is he both able and willing? Then from whence comes evil?"

Signym, in the Book of Revelation, God finally takes a side, no longer a spectator of a philosophical game. Does God, with infinite patience, wisdom, and knowledge, spend infinite time debating and convincing 6ixStringJack to behave better? God does NOT. God slays 6ix in the most brutal and painful fashion. Not so much Heavenly Mercy for 6ix and his ilk if their bad behavior attracts attention from God in Heaven or Mankind on Earth. To feel better about themselves, I know fools like Signym and 6ix habitually and energetically redefine evil as good and good as evil, but those lazy rhetorical tricks and silly mind games don't convince either judgmental Gods or Men to spare a fool's life.

The Joss Whedon script for Serenity, where Wash lives, is Serenity-190pages.pdf at
https://www.mediafire.com/folder/1uwh75oa407q8/Firefly

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Tuesday, March 14, 2023 10:36 AM

SIGNYM

I believe in solving problems, not sharing them.


You post that you're a non-believer, then you post about God.

You're nuts.

And, you dragged this thread off-topic.

-----------
Pity would be no more,
If we did not MAKE someone poor - William Blake


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Wednesday, April 5, 2023 5:10 PM

SIGNYM

I believe in solving problems, not sharing them.


Quote:

How did you go bankrupt?

Two ways. Gradually, then suddenly.-Ernest Hemingway



-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


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Wednesday, April 5, 2023 5:21 PM

SIGNYM

I believe in solving problems, not sharing them.


I know I'm missing a number of items, but ..

Saudi Arabia accepts yuan for oil
Saudi Arabia makes peace with Syria.
Saudi Arabia becomes a candidate member of the SCO, seeks to join BRICs.

OPEC+ announces surprise production cut... and none of the producers and neither of the largest consumers (China, India) bothered to let Biden* in on the news.

China and Brazil sign non-dollar trade agreement.

Japan bows out of the anti-Russia oil price cap

Malaysia trades using Indian rupee.

This video explains how Biden's* foreign policy... which tramples friends and allies alike in its drive to destroy Russia... is bringing the petrodollar to it's knees.








-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


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Wednesday, April 5, 2023 7:31 PM

6IXSTRINGJACK


Yup. Fuck Joe Biden*.

--------------------------------------------------

Growing up in a Republic was nice... Shame we couldn't keep it.

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Thursday, April 6, 2023 8:12 AM

SIGNYM

I believe in solving problems, not sharing them.


I knew I forgot something: Russia and India trade in rupees and rubles

You pro-Joe* retards keep fucking around with "wokeness" and Ukraine. See where that gets you.


-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


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Friday, April 7, 2023 12:12 PM

SIGNYM

I believe in solving problems, not sharing them.


It a perverse dark-humor sort of way, this gave me a good guffaw.



-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


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Saturday, April 8, 2023 5:32 PM

SIGNYM

I believe in solving problems, not sharing them.


Couldn't have said it better myself...


Quote:


Saturday, Apr 08, 2023 - 01:30 PM

Authored by Caitlin Johnstone via Medium.com,

Some empire managers are so brash about wanting to rule the world that they’ll occasionally voice their position so directly it sounds like an anti-imperialist said it...

We saw just such an instance last Wednesday during a conversation between empire propagandist Sean Hannity and warmongering senator Marco Rubio on Fox News. So frenzied was Rubio in his vitriol about the rise of China on the world stage that he accidentally wound up providing a very good argument against the hegemony of the US dollar.

Rubio began with a rant about how the US is in a “conflict” with China in response to a question from Hannity about whether Xi Jinping is preparing for war with America.

Quote:

“The bottom line is we’re in a conflict, and I think we have to start talking about it that way,” Rubio said. “I was very young, obviously, at the end of the Cold War, but it’s been about 30 years since there was another superpower on the earth that was in conflict with the United States. We are back in that place. We need to stop pretending like that’s not the case now.”
;

Oh for fuck's sake, Rubio. Do you see China massing ships on our coastline?

Yeah, me neither.

China is a RIVAL that we should outcompete. The only way China is an enemy is if we make it one. Which Rubio seems to be working on


Quote:

Hannity repeated the soundbite he’s been pushing for the last few weeks saying that China, Russia and Iran are a “new Axis of Evil,” then Rubio made a very revealing comment about a recent deal that was struck between China and Brazil.

Quote:

“Just today, Brazil, the largest country in the Western Hemisphere, cut a trade deal with China,” said Rubio.

“They’re going to, from now on, do trade in their own currencies, get right around the dollar. < font color = magenta] They’re creating a secondary economy in the world totally independent of the United States. We won’t have to talk about sanctions in five years, because there’ll be so many countries transacting in currencies other than the dollar that we won’t have the ability to sanction them.”

Well, DUH, Cap'n Obvious! Maybe that's why they're trying to get out from under!

Quote:

Rubio is not the first US imperialist we’ve seen expressing concern about the US dollar losing its position as the dominant currency of the world, not just with regard to China and Brazil but between China and Russia, between China and Saudi Arabia, between China and India, and between India and Russia.

Quote:

“The dollar is America’s superpower,” Fareed Zakaria writes for The Washington Post.

“It gives Washington unrivaled economic and political muscle. The United States can slap sanctions on countries unilaterally, freezing them out of large parts of the world economy. And when Washington spends freely, it can be certain that its debt, usually in the form of T-bills, will be bought up by the rest of the world.”

“Now an increasing number of nations are eager to find alternative financial systems to insulate themselves from Washington’s willingness to use sanctions as political leverage,” writes Jamie Seidel for the Murdoch-owned News.com.au, quoting an Australian Strategic Policy Institute think tanker as saying,

“Chinese authorities were shocked by the seizure of the Russian central bank’s foreign exchange reserves following the invasion of Ukraine. In the event of a Sino-American conflict, Chinese assets would similarly be vulnerable.”



The other day Pentagon insider and DC swamp monster Elbridge Colby spotlighted a concern on Twitter that the US might not be able to finance a war with China if the US dollar loses its status as the world’s reserve currency.

https://t.co/HETAVilL2V
— Elbridge Colby (@ElbridgeColby) March 27, 2023

The US has engaged in a tremendous amount of manipulation to secure the dollar’s position as the global reserve currency and all the power that comes with it, and has used it to fund a war machine of unprecedented might and to inflict starvation sanctions on disobedient nations around the world. It is a weapon, and US imperialists are bemoaning the looming loss of that weapon because they want to use it on many more people for the advancement of the interests of the empire.

Economic sanctions are somehow the only form of warfare where it’s considered acceptable to deliberately target civilian populations with deadly force, and the US empire makes liberal use of them. Starvation sanctions always hurt the weakest and most vulnerable members of a population by depriving them of access to medicine and adequate nutrition, and future generations (if there are future generations) will judge harshly those who used them.

It seems unlikely to me that the emergence of a multipolar world will in and of itself produce any kind of wonderful utopia, and as Professor Richard Wolff explains the dollar’s decline could potentially give rise to a lot of economic chaos and suffering. But at the very least the fall of US dollar hegemony would deprive one group of psychopaths a powerful weapon they should never have had, and could even end up impeding the empire’s ability to ramp up for a global conflict between major powers — a conflict which must never occur.

In any case humanity cannot continue along the trajectory it has been on, and any divergence from that trajectory opens up the possibility of real healthy change. Here’s hoping Marco Rubio is given a lot more to be upset about in the coming years.



-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal - Henry Kissinger


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Monday, April 17, 2023 1:10 PM

SIGNYM

I believe in solving problems, not sharing them.


Quote:

Is there a worldwide run on the Bank of the United States of America?

In talking this week with a friend about the United States seemingly imploding from within across multiple sectors, my friend stressed: “It’s not just from within. There is a run on the United States from certain nations and business interests around the world. Just like there was a run on banks after the collapse of Silicon Valley Bank, many nations are either thinking about — or actually proceeding with — transferring at least a portion of their allegiance, assets and commitments from the ‘Bank of the U.S.’ to the ‘Bank of China’ or elsewhere.”

This was not just some person sitting on a porch casually talking about current events while whittling a stick waiting for his Social Security or pension check to hit the mailbox. This was a former high-level U.S. government official, now a CEO, someone who sits on the boards of directors for multiple companies. He has massive real-world and business experience and believes the United State may be on the verge of collapse.

He is far from the only one to think that.

Some fear the Biden administration is losing control of our southern border; losing control of our decaying, crime-infested big cities; creating a recession; vilifying and needlessly destroying the fossil fuel industry while pushing suspect and subsidized “green” energy alternatives; leaving tens of billions of dollars in military equipment in Afghanistan while withdrawing our troops and abandoning an ally; stepping closer to a trip-wire in the Ukraine war, which could trigger a nuclear strike; turning on Israel over ideological issues as Turkey and others call on Arab and Muslim nations to unite and crush the Jewish State; weakening our military with one “woke” edict after another; focusing on “trans” issues at the expense of failing transportation infrastructure; cheerleading the social justice warrior takeover of our colleges and universities; and weakening the dollar (the currency much of the world depends upon).



All of these failings are true. BUT they're not the ones the "rest of the world" is concerned about. The biggest ones are

a) The USA and its NATO "allies" are getting their ass handed to them in Ukraine, and since the USA came to dominate the world by giving the impression of military invincibility, once the spell is broken resentment and blowback emerge.

b) The second is that the USA overplayed its "world reserve currency status" card by villifying, sanctioning, and seizing the assets of any nation it didn't like. Worse, by imposing secondary sanctions on other nations who didn't want to comply with USA diktat.

c) And, finally, yes... by constantly overspending and getting into massive, unpayable debt in every direction, the U$D is worth less.

Quote:

Is it any wonder, then, that nations such as France, India, Saudi Arabia, Japan, Mexico, Brazil and others are suddenly hedging their bets by looking beyond the United States of America for partnerships and stability?

France.... Mexico... Saudi Arabia... Brazil...


https://thehill.com/opinion/white-house/3950467-is-there-a-worldwide-r
un-on-the-bank-of-the-united-states-of-america
/

And Africa in general.

But while this is probably catastrophic for the USA, it won't be a SUDDEN catastrophe bc it will take months and YEARS for other nations to disentangle themselves financially and economically from the USA. Bc it will take other nations months and YEARS to remove themselves from the SWIFT and IMF and find other reliable, stable platforms, trade partners, lenders, and currency pairs.

China is ready to step in but it does not have a universally adopted interbank platform or currency. So there will be many instances of detailed negotiations and specific trade deals before the U$D becomes just a currency among currencies.

ATM we're seeing a rush out of the door, but once this spare of early adopters leaves, the rush will slow down.

I hope we use this grace period wisely, but given our current leadership (both DNC and RNC) I doubt it.

IMHO anyway.



-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


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Monday, May 1, 2023 11:29 AM

JAYNEZTOWN


White House digs in on debt strategy after House Republicans' passage of their plan

https://news.yahoo.com/white-house-digs-debt-strategy-144507831.html

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Monday, May 1, 2023 4:23 PM

SIGNYM

I believe in solving problems, not sharing them.


Quote:

The US Dollar share of total global reserves in real terms has collapsed from about 66% in 2003, to 55% in 2021, to 47% in 2022. In particular, the 8% US dollar reserves decline over the last year is very concerning as it is roughly 10x the average annual decline over the past two decades.

the US implemented currency-based sanctions in response to the Russia-Ukraine war. In response some foreign central banks have been emptying their coffers of US Dollar based assets.
As you can see below, however, the main reserve replacement hasn't been another major currency (Euro, Yen and Yuan reserves are up <4%).

Rather, the main replacement for the US Dollar's decline in central bank reserves over the last year has been gold. 1,136 tonnes were added in 2022, the largest central bank increase in gold reserves on record. With emerging economies such as Russia and China leading the way.

International Transactions:

The US Dollar is still by far the dominant global reserve currency from a transaction point of view. In fact, between 2009 - 2019 it accounted for a whopping 96% of all international transactions. This in turn creates significant and lasting network effects. Basically, people throughout the world accept the dollar because they know others will and have been doing so for their entire lifetime. For now, people throughout the world continue to believe the US Dollar a useful tool for exchange. However, that percentage of global transactions while still high, has also been falling. The latest data available shows it declined from the 96% average previously stated to 88% by April of last year.


https://seekingalpha.com/article/4597560-will-us-dollar-lose-its-globa
l-reserve-status


I think that tracking non-dollar trade is going to be difficult, since some of it (and an increasing amount) avoids the SWIFT and the BIS.


-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


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Tuesday, May 9, 2023 2:44 AM

JAYNEZTOWN

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Monday, May 15, 2023 5:10 PM

JAYNEZTOWN


The UN gets shifted out, maybe it will save the US Dollar?


Growing signs that BRICS may push UN out of New York

https://www.counterpunch.org/2023/04/28/relocating-un-headquarters-out
-of-the-united-states
/

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Thursday, June 15, 2023 2:55 PM

SIGNYM

I believe in solving problems, not sharing them.


Editorial from Biden's new economic advisor, Jared Bernstein Aug 27, 2014.

Quote:

"THERE are few truisms about the world economy, but for decades, one has been the role of the United States dollar as the world’s reserve currency. It’s a core principle of American economic policy. After all, who wouldn’t want their currency to be the one that foreign banks and governments want to hold in reserve?

But new research reveals that what was once a privilege is now a burden, undermining job growth, pumping up budget and trade deficits and inflating financial bubbles. To get the American economy on track, the government needs to drop its commitment to maintaining the dollar’s reserve-currency status.

....

The privilege of having the world’s reserve currency is one America can no longer afford."



Originally published by NYT.

-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


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Tuesday, July 11, 2023 7:55 PM

JAYNEZTOWN


Jekyll Island Author Declares Revolution Is Only Way to Escape the Fed's Planned Crisis


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Wednesday, August 2, 2023 4:34 PM

JAYNEZTOWN


Fitch downgrades US' long-term ratings from 'AAA' to 'AA+'

https://finance.yahoo.com/news/fitch-downgrades-us-long-term-215304540
.html

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Friday, November 10, 2023 5:42 PM

SIGNYM

I believe in solving problems, not sharing them.


Quote:

Moody's Cuts USA's Aaa Rating Outlook To 'Negative'; Treasury Dept "Disagrees"

Friday, Nov 10, 2023 - 01:48 PM

Who could have seen that coming?

After a disastrous 30Y bond auction this week, a collapse in Treasury market liquidity, and an accelerating rise in the market's perception of the United States' credit risk, Moody's has just cut its outlook on US credit ratings to negative from stable.



https://www.zerohedge.com/political/moodys-cuts-usas-aaa-rating-outloo
k-negative


However Moody's maintains Aaa rating.

What happened here?
Well, the USA Treasury regularly sells Treasury bonds (i.e. lend me $ today and I promise to pay you back with interest) in order to continue operating the government in deficit mode.

Last Treasury auction, (30-year bonds) other institutions (other governments, banks etc) were reluctant to buy. Cash money was not raised. This not only indicates that other institutions see Treasury bonds as not worth buying at a particular interest rate (a bit too risky for that reward ), it also impedes the USA government from rolling over its debt at manageable interest rates.


-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger

Loving America is like loving an addicted spouse - SIGNYM



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Sunday, December 10, 2023 4:58 PM

SIGNYM

I believe in solving problems, not sharing them.


Quote:

Petrodollar Endgame Moves Even Closer

The UAE just stopped transacting oil in U.S. dollars. BRICS now controls most of the world's nuclear arsenals, oil and precious metals & rare earth minerals. It's time to wake up.

*****

I'll be the first to admit that two of the main themes on this blog – the United States' sovereign debt crisis and the deterioration of the petrodollar – have been extraordinarily slow-moving theses.

In both cases, there have been developments that stand at odds with my contentions. For example, US stock indices continue to move higher, despite our economy grinding to a halt, and the BRIC nations have not developed and put forth their own reserve currency to combat the dollar, as I have suggested may happen. They also haven't backed any of their sovereign currencies with gold, as I have also suggested. While the timing hasn't proven me right as quickly as I would like, it doesn’t mean that things aren't ticking forward for both of these forthcoming realities.

And, in the case of the death of the petrodollar, there was a huge development in late November that was under-reported and unnoticed by the market.

The death of the petrodollar is one of the key waypoints in the US dollar losing reserve currency status, as I have written about at length in the past. And while the US dollar used to be the only currency that foreign nations would trade oil in, that has now come to a screeching halt.

Not only is Saudi Arabia trading oil in other currencies than the dollar (notably the Yuan), it now appears the UAE is also strategically shifting away from the US dollar in its oil transactions, marking a significant change in the global financial landscape.

This move, involving potential deals with up to 15 countries including China, Russia, and Egypt, is part of the de-dollarization trend I have predicted, led by the oil sector. Led by the BRICS alliance, the move is redefining global economics and challenging the US dollar's dominance in international trade.

When you take this into account alongside the fact that Russia is strengthening its ties with China and Saudi Arabia, it is tough to think anything but that we are still solidly on the path to global de-dollarization. Just yesterday it was reported that Russia was working closely with Saudi Arabia and OPEC — who has many member nations in the BRICS consortium — on oil cuts.

Shortly after Russian President Vladimir Putin's unexpected visit to Riyadh to meet with Saudi Crown Prince Mohammed bin Salman, a joint statement from Russia and Saudi Arabia was released. OPEC along with Russia and other allies, agreed to voluntary cuts totaling about 2.2 million barrels per day, predominantly led by Saudi Arabia and Russia maintaining their 1.3 million bpd cuts.

I asked my friend Andy Schectman of Miles Franklin Precious Metals for his exclusive take on the situation for my Fringe Finance readers. He’s one of the smartest people I know when it comes to understanding the dollar globally — and he’s all but predicted the exact scenario that’s taking place.

“The OPEC members decided in 1973/4 to price all oil sales in US dollars and invest any excess in US Treasury bonds in exchange for US military protection. This is how the petrodollar system got its start, and for the last 50 years, due to this arrangement has created a ‘synthetic’ demand for the dollar, and established the US dollar as the benchmark for oil trade globally,” he explained to me.

He continued: “The US Government has done more to destroy this country in the previous few years than any external enemy could have ever done. By using sanctions and other forms of coercion, we have turned the US currency and the SWIFT system into weapons that has forced out a large portion of the global population creating a global backlash that is accelerating.”

“Without a doubt, the deliberate emergence of new cooperating powers is causing a significant global power shift that the world is currently experiencing. The emergence of the BRICS in my mind is the most notable example. Six more strategically important nations were added to the group in August: Argentina, Saudi Arabia, Egypt, Ethiopia, United Arab Emirates, and Iran,” Andy said.

When I asked Andy why it’s important that people take the BRICS nations seriously, he told me: “With over 40 more countries showing interest in joining the BRICS group of countries and reports of many more expressing interest growing daily, it appears that this growing union is gaining legitimacy and serious traction.”
“Together with their new members, the BRICS countries currently control two of the three largest nuclear weapons arsenals on the planet, most of the world's strategic commodities, oil production capacity, enormously expanding reserves of precious metals, and, surprise, the majority of rare earth metals required for the production of batteries and other green and renewable energy applications.”

He also talked about the importance of Saudi Arabia’s role when asked about Putin’s recent trip to visit MBS: “In recent years, Saudi Arabia, the cornerstone of the dollar hegemony, has joined the exponentially expanding Belt Road Initiative alongside all the other OPEC members. The Saudi’s have also joined the BRICS, the Shanghai Cooperation Organization which is the largest regional financial and military organization in the world, and the BRICS New Development Bank.”

“The west is receiving a very clear message from this progression,” Andy told me. “But if that wasn't clear enough, Saudi Arabia's finance minister made it quite apparent at the 2023 World Economic Forum in January that the Kingdom is open to dealing in currencies other than the US dollar for the first time in 48 years.”

When I asked him about the UAE no longer taking dollars for oil, he told me: “While it may not be as quite as dramatic as Saudi Arabia and the rest of OPEC doing the same thing, don’t kid yourself, this is a hugely significant event. The ramifications become far more concerning when viewed in the light of the growing progression of global de-dollarization and large number of unilateral trade deals usurping the dollar and the SWIFT system.”



ORIGINALLY FROM FRINGE FINANCE

MORE AT https://www.zerohedge.com/markets/petrodollar-endgame-moves-even-close
r



-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger

Loving America is like loving an addicted spouse - SIGNYM



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Sunday, December 10, 2023 11:12 PM

6IXSTRINGJACK


Assuming the Oligarchs haven't already planned all of this in advance, that's fine.

We'll just destroy everyone in our path with our military might if they try something stupid.

--------------------------------------------------

Political correctness is just tyranny, with a smiley face.

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Monday, December 11, 2023 7:19 AM

SIGNYM

I believe in solving problems, not sharing them.


Quote:

Originally posted by 6ixStringJack:
Assuming the Oligarchs haven't already planned all of this in advance, that's fine.

We'll just destroy everyone in our path with our military might if they try something stupid.

--------------------------------------------------

Political correctness is just tyranny, with a smiley face.



WTF???
"Try something stupid?"
This is about the Middle East accepting other currencies in payment for oil.
In fact, if I had to guess, ME nations are making/ have made arrangements for bank to bank transfers outside of the western SWIFT system, quite possibly using CBDCs.

What does our military have to do with any of that?



-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger

Loving America is like loving an addicted spouse - SIGNYM



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Tuesday, July 30, 2024 12:25 PM

JAYNEZTOWN


Crypto Billionaire Mike Novogratz Issues Warning on US National Debt, Says There’s Only Solution to Crisis

https://dailyhodl.com/2024/07/29/crypto-billionaire-mike-novogratz-iss
ues-warning-on-us-national-debt-says-theres-only-solution-to-crisis
/

Elon Musk warns ‘America is going bankrupt’ as interest payments on US debt ate up 76% of June’s income tax revenue

https://finance.yahoo.com/news/elon-musk-warns-america-going-103300553
.html

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Monday, August 5, 2024 8:29 PM

JAYNEZTOWN

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Saturday, October 26, 2024 12:10 AM

SIGNYM

I believe in solving problems, not sharing them.


BRICS Summit 2024



A whole parallel system for trade payments, trade insurance, economic rating, and finance.

-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


AMERICANS SUPPORT AMERICA


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Saturday, October 26, 2024 12:39 AM

6IXSTRINGJACK


Explain it to me like I'm two years old.



--------------------------------------------------

Trump will be fine.
He will also be your next President.

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Saturday, October 26, 2024 5:02 AM

SIGNYM

I believe in solving problems, not sharing them.


Every nation in the world, except maybe N Korea, accepts the dollar in payment for goods (oil, textiles, metals, chemicals, chips etc) or services (call centers, radiology readings, etc).

As a result, every bank in the world (except maybe N Korea) has dollars in its coffers and many nations hold dollars as foreign currency reserves, sometimes quite a lot of them. Because of that, every nation that hold a significant # of dollars (Saudi Arabia, China) has an interest in keeping the value of the dollar stable compared to other currencies.

We don't realize how extraordinary that is, but if we lived in different country with a different currency, the Malaysia ringgit, for example, our currency might not even be easily convertible to other currencies, or not at a stable value.

This didn't come about by accident, but as a result of the Bretton Woods agreement and, after that, the petrodollar.

In addition, the West developed a bank to bank communication system, the Society for Worldwide Interbank Financial Telecommunication, called SWIFT. This is how nearly all banks transfer money between themselves. Since SWIFT was developed early, it's relatively primitive.

So the USD is the world currency, like English is the lingua franca

More later.


-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


AMERICANS SUPPORT AMERICA


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Saturday, October 26, 2024 1:17 PM

SIGNYM

I believe in solving problems, not sharing them.


So all nations with banks are, or were, part of SWIFT. All nations that purchased oil used the dollar. Nations that took out international loans often took them out in dollars. The dollar-dominated IMF and World Bank were at the ready to "help" struggling nations with loans. Bonds were insured thru AIG and similar insurances. Ships took out insurance from Lloyd's of London. It was a complete, well developed worldwide ecology for USD payment, trade, finance, investment and insurances. And our military would step in, when necessary, to enforce the use of the dollar for oil payments (petrodollar).

It was impossible to trade or make payments outside of the dollar.

****

The USA State Department wielded the power of the USD with abandon. As of June 2023 the USA had trade or financial sanctions against

Afghanistan
The Balkans
Belarus
Burma
Central African Republic
China
Cuba
Democratic Republic of Congo
Ethiopia
Hong Kong
Iran
Iraq
Lebanon
Libya
Mali
Nicaragua
North Korea
Russia
Somalia
Sudan
South Sudan
Syria
Ukraine
Venezuela
Yemen
Zimbabwe

All our unilateral sanctions, not authorized by the UN, are ILLEGAL according to international law.

They took the extraordinary step of kicking the Russian Central Bank and eight other Russian banks off of SWIFT, expecting the Russian economy to collapse by blocking international payments for oil, gas, fertilizer, grain and so forth.

But while China, India, and other nations took advantage of Russian difficulties by negotiating lower prices for Russian commodities, they managed to evade USA sanctions.

So in summer 2024, the USA announced it would ramp up enforcement of secondary sanctions that is, the USA would sanction other nations that didn't honor OUR sanctions against Russia.

That, IMHO, was the last straw.
It was OK for us to make select nations suffer, and OK for us to squeeze Russia, but we just threatened the economies of many nations that depended on Russia for critical imports of oil, gas, grain, fertilizer, and so forth. It's one thing for the EU to commit economic suicide, another thing to require so many other nations to do the same.

Hence, the push to create a whole new payment, finance, insurance, and rating system outside of SWIFT and the dollar.

The first is a cross border international bank messaging system. This appears to be central bank block chain payment transfers.

The second is to ease the conversion or use of local currencies. Bc so many Russian banks had been removed from SWIFT it was difficult for private banks to convert rubles to yuan, rupee, or whatever. This will now be accomplished at the Central Bank level, which will communicate outside of SWIFT, and us called BRICS Bridge.

There is a bank set up already called the BRICS Bank, which can lend money in whatever currency to nations temporarily short of cash. There is a payment clearing function, called BRICS clear (IIRC), and even an insurance function.

So trade between the BRICS nations CAN be outside of the dollar. Since the BRICS nations include China, India, and Saudi Arabia, they will of course continue to trade in USD as well.

*****

What can the USA do?

Well, it can sanction nations that are participating in this BRICS system, but since that includes China and Saudi Arabia, that would be economic suicide. Trump, probably the only American politician who sees and publicly responded to this threat (so far) said he would tariff products 100% of nations that avoided the dollar, but that's just another form of sanction, with the possible result of economic suicide.

The most effective response to keep this thing from snowballing would be to selectively sanction or tariff some of the smaller nations, like Vietnam, to try to split them out of the BRICS trading system. But it seems to me that might incentivize other nations to join BRICS.

This is one of those cases where events behave "gravitationally", that is, the more there is, the more there is. The more nations join this trading, currency, and finance system, the more opportunities there will be to trade, and the more nations will join.

*****

To give you an idea of how successful the BRICS summit was, more nations kept streaming in, wanting to join the party before it ended.

What does this mean for the USA?
If it succeeds, the USA will no longer be able to impose its will on other nations thru economic and financial means. Ultimately, it will probably reduce banking and export/ import profits, since there will be a competitive alternate. After that, it depends very much on how the USA chooses to respond. If we attempt to fight this thing, we would probably become more isolated from world trade. (Maybe not so bad for us, but death knell for the EU, which depends heavily on commodity imports).


Still thinking and listening to others' analyses bc not my area of expertise.

-----------
"It may be dangerous to be America's enemy, but to be America's friend is fatal." - Henry Kissinger


AMERICANS SUPPORT AMERICA


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